Republic of the Philippines

Department of Education
N a t i o n a l C a pi t a l Re g i o n
Sc h o o l s D i v i s i o n O f f i c e o f La s Pi ñ a s C i t y

NAME: ___________________________________________ Score: ___________________

GRADE & SECTION __________________________ Teacher: ___________________

MODULE IN ABM12 ENTREPRENEURSHIP

Third Quarter
Week 1

Lesson 1 The Entrepreneurial Process

What I Need to Know

1. Identify the steps in the entrepreneurial process

2. Discuss some of the methods in generating ideas
3. Recognize the importance of opportunity assessment
in Entrepreneurial process and daily living.
What I Know

In the Word Pool below, choose the terms you think are associated with
the word OPPORTUNITY, then write it on the lines below.

______________________ _______________________ Chance

business
______________________ _______________________
goal
______________________ _______________________ end
change
______________________ _______________________ life
start
______________________ _______________________ situations
What’s In profit
The most difficult part of every task is where and how you gain
start
possible
favorable
success
loss
income
As the saying goes, the most difficult part of every task is where circumstances
and how you start. The same is true with entrepreneurship.
unfortunate
You may have all the resources needed to operate a new venture,
but it will never be easy to start one. This lesson will introduce you
to the entrepreneurial process and discuss the proper and efficient ways of starting a business.

What’s New
“Start where you are. Use what you have. Do what you can.” This saying
summarizes what the aspiring entrepreneurs must do in order to start a business. It may not
be as easy as one, two, three, but as long as they know how to maximize all the resources they
have and learned all the necessary things they have to know, and then they can finally build
the business that they want.
But how do you properly and efficiently start a business?
What is it
The entrepreneurial process is a step-by-step
procedure in establishing any type of business
that an entrepreneur has to undergo. It is composed
of four aspects namely, Opportunity Spotting and
Assessment, Developing a Business Plan,
Determining the Capital Needed, Running the Business
and Harvesting.
1. Opportunity Spotting and Assessment
  This is the beginning and the most difficult.
Entrepreneurs take note of all interesting trends in the environment that could potentially
be a source of business.
 Since the market originates from consumers, they are considered to be reliable sources
of information in line with different opportunities.
 Major sources of opportunity are the following:
a. conflicts in the environment b. challenges faced by co-entrepreneurs
c. new trends d. processes
e. developments in the environment
 Other minor sources are the feedback from business partners such as:
a. Retailers b. wholesalers
c. manufacturers
d. technical people that the entrepreneur is working with
 It is extremely crucial for the entrepreneur to carefully assess the opportunity by:
a. estimation of opportunity length b. capitalization required
c. Threats d. profitability
e. calculation of real and perceived value.
 Entrepreneurs should also assess if the opportunity is aligned with their personal goals
and attributes.
 Entrepreneurs should think ahead regarding how they will be positioning their product
or services in the market while featuring its selling proposition.
 Entrepreneur’s stimulus in starting a new venture.

2. Developing a Business Plan

 Business plan is a comprehensive paper containing the management and organization,

production, marketing, and financial plans and strategies of the business.
 It answers the question, “What do I want to do?”
 It serves as a roadmap for entrepreneurs so they can be guided as to where they want to
take their businesses and be prepared for future challenges that they may face.
 Entrepreneurs should accomplish a business plan only after they have spotted and
assessed the opportunities of the market.
3. Determining the Capital Needed

 In the entrepreneurial method, it is necessary to calculate and compare the assets

needed to set up the company with the current resources of the entrepreneur.
 Caution must be applied in the calculation of the complete set of resources
necessary and include only those things that are deemed to be the real needs of the
production of the project.
Allowance must also be considered as there are times when
resources are inadequate or inappropriate
4. Running the Business
 This is the part where the entrepreneur should
use the resources allocated for the new venture.
 The business plan established in step 2
should have already been implemented.
 Including logistics, marketing and sales,
human resources, financing and execution
of plans, all facets of the business plan should
be systematically studied.
 
The entrepreneur should have a control and monitoring system to serve as a check
and balance of the produced plans.
5. Harvesting

 The stage in which the entrepreneur decides on the business’s future

growth/development or demise
Methods of Generating Ideas
Recognizing and understanding the vast sources of opportunities is one difficult activity to do.
Also, the methods of generating ideas may be overwhelming to undergo through. Either one or a
combination of the methods given can be used by the entrepreneur in generating new ideas.
1. Focused group discussion (FGD)
 A moderator handles an open free-flowing, and in-depth discussion with a group of people
who can provide insightful ideas bout a new product or service that will fill a market need
2. Brainstorming
 It is an activity that allows the participants to share creative ideas using the following
rules:
a. No destructive criticism or judgment is allowed
b. Wilder ideas are accepted
c. More ideas are preferred
d. Improvement of others’ ideas is allowed
3. Brainwriting or Internet brainstorming
 Exactly the same as brainstorming except that the channel used is not face-to-face, but
in writing or online.
 The results of brainwriting or Internet brainstorming usually take longer as the answers
depend on the availability of the participants in answering the questionnaires online
4. Problem inventory analysis
 Method is similar to FGD except that the participants are already given an inventory of
product or service problems
 The participants will just identify from the list given the compelling problem/s of a
potential product or service instead of generating the ideas from them
What’s More
1. List three opportunities in your locality and discuss what method of
generating ideas will you use and why. Write your answers in a form of a
table such as the one below.
Method of Generating Reason for using that
Opportunity Ideas Employed method

1.

2.

3.
2. Prepare a set of idea-generating questionnaires with a minimum of five
questions for the three opportunities you identified in your locality.
What I Have Learned
When starting a new business, there is an entrepreneurial process that is often
followed.
The entrepreneurial process is a step-by-step procedure in establishing any type
of business that an entrepreneur has to undergo
An entrepreneur must find, evaluate, and develop an opportunity by overcoming
the forces that resist the creation of something new
The entrepreneurial process is composed of five aspects namely, Opportunity
Spotting and Assessment, Developing a Business Plan, Determining the Capital
Needed , Running the Business and Harvesting
There are different methods by which an entrepreneur may generate new ideas
such as Focused group discussion, Brainstorming, Brainwriting or brainstorming
internet and Problem inventory analysis
What I can Do

To further evaluate the lessons learned regarding the Entrepreneurial

Processes, students must perform the given activities below.
Activity 1: What’s the correct order?
Using the Caterpillar Strategy below, put the steps of Entrepreneurial
Process in their respective circle
 STEP 2 STEP 4
STEP 1 STEP 3 STEP 5

Opportunity Spotting and Assessment Developing a Business Plan

Determining the Capital Needed Running the Business
Harvesting
Activity 2: Where’s my match?

Match every step of the Entrepreneurial Process to its meaning by

writing the letter of the correct answer.

_____ 1. Determining the A. During this stage, entrepreneurs

Capital needed
_____ 2. Developing a Business
Plan
_____ 3.Opportunity Spotting
_____4. Running the Business
_____ 5. Harvesting
formulates a comprehensive
paper which details every aspect
of the business.
B. This is the stage wherein the
entrepreneur decides on the
business’s future
growth/development or demise
C. At this stage, entrepreneurs take
notes of interesting trends in
in their environment
D. The entrepreneur calculates
the resources needed to
establish the business.
E. This is the stage wherein the
resources are applied to the new

Additional Activities
venture
Activity 3: In 3-4 sentences, write down how you would relate the
importance of Opportunity spotting of the Entrepreneurial
Process in your everyday life?
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Assessment
A. True or False.
_______ 1. Entreprenurship is a process.
_______ 2. Opportunity spotting and assessment is considered the easiest
part as it is the beginning of the entrepreneurial process.
_______ 3. Business opportunities can be found everywhere.
________4. An entrepreneur may employ one or more methods of generating
new ideas.
_______ 5. Entrepreneurial process has ten steps.
_______ 6. Brainstorming and brainwriting are one and the same method.
_______ 7. A method allowing an open free-flowing, in-depth discussion with
a group of people is called Focused group discussion.
_______ 8. In brainstorming method, the participants are allowed to give their
judgment or criticism even if they are destructive because more
ideas are preferred.
_______ 9. The results of brainwriting or Internet brainstorming are usually
faster than other methods of generating new ideas.
______10. In the Problem inventory analysis method of generating new ideas,
the participants are given an inventory product or service
problems instead of generating ideas from them.